Poly to invest RMB 10 bln in Foshan

Nov. 23, 2009 (China Knowledge) - Poly Real Estate Group Co Ltd<600048>, a major property subsidiary of Poly Group, yesterday announced that it plans to inject around RMB 10 billion into a huge mixed-use real estate project in Dongping New Town, Foshan, Guangdong Province, sources reported.

The large project will be located on two sites that the Shanghai-listed firm acquired in October for RMB 2.04 billion and RMB 1.3 billion, respectively. The project will have a gross floor area of 1.5 million square meters, of which 450,000 sq m is for commercial properties and 550,000 sq m is for high-end apartments.

The project will also include a shopping mall with a floor area of more than 80,000 sq m, a five-star hotel and a Grade A office building.

At present, China Merchants Property Development Co Ltd<000024><200024> is the only property firm developing high-end apartment projects in Dongping New Town. The average price is RMB 6,700 per sq m.

According to China Knowledge's earlier report, Poly's contracted sales revenue was RMB 36.86 billion in the first ten months of this year, more than twice what the firm realized in the same period of last year. Its contracted sales area also more than doubled to 4.46 million square meters.